APL Apollo, an Indian steel manufacturer, has confirmed reports of acquiring a manufacturing unit of Shankara Building Projects, as reported by the Indian daily news, VC Circle.
The acquisition will be made for a sum of INR 70 crore.
The acquired 2,000-million tonnes per annum (MTPA) tube manufacturing unit makes galvanised iron (GI) and pre-galvanised (GP) pipes that are high margin and value-added product segments for the acquirer, said APL Apollo in a statement, as reported by the Indian daily news, VC Circle.
The acquisition will also let APL Apollo build and strengthen its market share in Indias southern market as Shankara is the second largest player in the region, the company added, as reported by the Indian daily news, VC Circle.
The company further said that the acquired unit is presently operating 40 per cent utilization and is aiming to increase that to a standard of 80-85 per cent.
The plant complements our existing operations in Bengaluru and Hosur and will further bolster our manufacturing capacity to meet the growing demand for steel tubes and pipes in the south, east and south-western markets," said Sanjay Gupta, chairman at APL Apollo, as reported by the Indian daily news, VC Circle.